TMIB Blog

Did YOU know?

Did you Know?In today’s Did YOU know, we will cover “What is the difference between Uninsured and Underinsured Motorist Coverage?”

Accidents can be scary experiences. The crush of metal, the shatter of glass, and the squeal of tires can all be jarring stuff. Just as terrifying, however, are the 4 words you dread to hear after an accident: “I don’t have insurance.”

While auto insurance is compulsory in the US, based on a February 2012 report from the California Department of Insurance, nearly 25% of all California drivers are not insured. When an uninsured driver gets into an at-fault accident, the other driver can find himself or herself footing the bill.

In order to help protect yourself from bearing the cost of accidents caused by uninsured motorists, you should purchase uninsured motorist coverage. This type of coverage will help pay for vehicular damage and bodily harm caused by an uninsured motorist. Importantly, this type of coverage can help cover damage caused by a hit-and-run collision (some specific requirements apply to this coverage). While your collision coverage might cover some of the damage to your car caused by an uninsured driver, uninsured motorist coverage will help ensure that you are better protected after an accident.

While uninsured and underinsured motorist coverages are often lumped together in the insurance policy, they actually do different things.

Uninsured motorist coverage will protect you from vehicles that are not insured, while underinsured motorist coverage is important when the at-fault driver does not have enough insurance to pay for the damage. If the other driver’s coverage limits aren’t high enough to cover the damage to your car or person, underinsured motorist coverage can help pick up the difference.

So how much uninsured and underinsured motorist coverage should you buy? It’s a tricky question that depends on your risk tolerance, assets, and state in which you are purchasing insurance. Consult with your knowledgeable broker at Tegner-Miller Insurance Brokers for more information on uninsured and underinsured motorist coverage, and for guidance on how much coverage to buy. Call us at 310-828-9662.

The information provided in our blogs are very brief overviews that do not provide complete descriptions of any coverage described nor do they list all of the important factors one should evaluate before deciding on a policy. Please speak to your broker at TMIB about your specific insurance needs and for more detailed information about types of coverage.